Indofood reports net sales increase in first half of 2010

by World Grain Staff
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JAKARTA, INDONESIA — PT Indofood Sukses Makmur Tbk announced on Aug. 26 its financial results for the first half of the year ended June 30. Indofood recorded consolidated net sales of Rp18.12 trillion ($2 billion), increased 0.2% from Rp18.08 trillion in the same semester last year. The increase in the consumer branded product (CBP) group sales is offset by the decline in the agribusiness and Bogasari groups.

The CBP Group, which consists of noodles, dairy, food seasoning, snack foods, nutrition & special foods division, contributed 47% to consolidated net sales, increased from 43% in the same period last year. The increase in sales is mainly driven by volume growth across the divisions partly due to the improvement in macro economic conditions.

Compared to the same period last year, contribution from Bogasari Group to consolidated net sales declined to 26% from 30%, due to lower flour price in response to lower wheat price in the international market.

Agribusiness and distribution group contributed 19% and 8%, respectively, to consolidated net sales, unchanged from the same period last year.

Gross profit increased 24.6% to Rp5.88 trillion from Rp4.72 trillion, as a result of lower input costs. In line with the growth in gross profit, operating profit increased 40.3% to Rp3.12 trillion from Rp2.22 trillion. Gross margin and operating margin improved to 32.5% and 17.2%, respectively. Net income increased 76.4% to Rp1.41 trillion from Rp799.74 billion, mainly driven by robust operational performance as reflected in the increase of core profit to Rp1.38 trillion from Rp595.20 billion in the same period last year.

Anthoni Salim, the president director and chief executive officer of Indofood, said: "We expect that the domestic economic conditions will continue to improve, mainly fuelled by the increase in domestic private consumption. The improvement in the economy is likely to benefit the food industry as food expenditure constitutes the largest portion of domestic private consumption. As a leading and integrated food company, we are well positioned to capture the potential growth in the economy in general, and food industry in particular."

Shares of the company on Aug. 27 rose to their highest level in almost four weeks following the announcement that Indofood plans to sell a 20% stake of the unit in an initial public offering in September.

 

 

 

 

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